1-1                                   AN ACT
 1-2     relating to the transfer of certain underused real property owned
 1-3     or controlled by the state to political subdivisions for use as
 1-4     affordable and accessible housing.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 31.156, Natural Resources Code, is amended
 1-7     to read as follows:
 1-8           Sec. 31.156.  PROPERTY REVIEW. (a)  The division shall review
 1-9     the real property inventory of each state agency not less than
1-10     every four years, and a review shall be made during the calendar
1-11     year before the agency is scheduled for abolition under the Texas
1-12     Sunset Act (Chapter 325, Government Code).  The division may verify
1-13     the accuracy of inventory records provided by an agency.
1-14           (b)  The division shall identify [the] real property owned or
1-15     controlled by the state that is not being used or is being
1-16     substantially underused.
1-17           (c)  The division shall provide a list and an appraisal of
1-18     properties described by Subsection (b) to the Texas Department of
1-19     Housing and Community Affairs. Not later than the 60th day after
1-20     the date of receipt of the list and appraisal, the department shall
1-21     make recommendations to the division regarding the suitability of
1-22     those properties for affordable and accessible housing.
1-23           (d)  For each property identified as not being used or as
1-24     being substantially underused under Subsection (b), the division
 2-1     shall [and] make recommendations to the commissioner regarding the
 2-2     use of the property or regarding a real estate transaction
 2-3     involving the property.
 2-4           (e)  If the Texas Department of Housing and Community Affairs
 2-5     designates a property as suitable for affordable and accessible
 2-6     housing, the  division's recommendations must include a
 2-7     recommendation that title to the property be transferred to an
 2-8     appropriate political subdivision for use as affordable and
 2-9     accessible housing.
2-10           (f)  The division's recommendations must [shall] include an
2-11     analysis of the highest and best use to which the property may
2-12     legally be placed.  It shall include recommendations for
2-13     alternative uses of the property addressing potential for
2-14     commercial or agricultural lease of the property or any other real
2-15     estate transaction or use that the division may deem to be in the
2-16     best interest of the state.  The division shall solicit proposals
2-17     and shall accept any unsolicited proposals about real estate
2-18     transactions involving the property that would be of significant
2-19     benefit to the state.
2-20           (g) [(c)]  The division shall, on completion of a review,
2-21     submit to the commissioner any information pertinent to the
2-22     evaluation of a real estate transaction involving the []real
2-23     property, including the current market value of the property and
2-24     including an evaluation of any proposals received from private
2-25     parties that would be of significant benefit to the state.  If the
2-26     division submits an evaluation of a sale of property, it must also
2-27     submit an evaluation of the lease potential of the property.
 3-1           (h) [(d)]  In any year that the division will evaluate
 3-2     property under the management and control of the adjutant general's
 3-3     department or the Texas National Guard Armory Board, the division
 3-4     shall notify the adjutant general's department before the division
 3-5     begins the evaluation.
 3-6           [(e)  The division shall furnish an appraisal to the Texas
 3-7     Department of Housing and Community Affairs of properties that have
 3-8     been identified as unused or substantially underused.]
 3-9           SECTION 2. Sections 31.157(b) and (c), Natural Resources
3-10     Code, are amended to read as follows:
3-11           (b)  The draft report shall be submitted to the State
3-12     Purchasing and General Services Commission which shall further
3-13     evaluate the potential use of the property by another state agency
3-14     or department.  The draft report shall also be submitted, at the
3-15     same time as it is furnished to the commission, to each agency that
3-16     owns or holds in trust property that is the subject of the draft
3-17     report[, and to the Texas Department of Housing and Community
3-18     Affairs].  The commission may comment on any findings or
3-19     recommendations made by the commissioner and may make additional
3-20     recommendations regarding the use of the property.  The commission
3-21     shall complete the review of the draft report within 60 days of the
3-22     receipt of the report and forward the comments to the commissioner.
3-23     [The Texas Department of Housing and Community Affairs may comment
3-24     on any findings or recommendations made by the commissioner and may
3-25     make additional recommendations regarding the suitability of the
3-26     property for affordable housing.]
3-27           (c)  The commissioner shall prepare and issue a final report
 4-1     that:
 4-2                 (1)  incorporates any [incorporating the]
 4-3     recommendations of the division regarding the transfer of title to
 4-4     the property to a political subdivision for use as affordable and
 4-5     accessible housing; and
 4-6                 (2)  incorporates any recommendations of the commission
 4-7     regarding the use of the []property [by another state agency] and
 4-8     addresses any [addressing all] comments received from the
 4-9     commission.
4-10           SECTION 3. Section 31.158, Natural Resources Code, is amended
4-11     by adding Subsections (d) and (e) to read as follows:
4-12           (d)  If the legislature authorizes the transfer of title to
4-13     real property to a political subdivision for use as affordable and
4-14     accessible housing, the division shall take possession and control
4-15     of the property and shall conduct the transaction as provided by
4-16     the policy adopted under Subsection (e).
4-17           (e)  The division shall adopt a policy regarding the method
4-18     of transferring title to real property designated as suitable for
4-19     affordable and accessible housing to a political subdivision for
4-20     use as affordable and accessible housing.  The policy must include
4-21     monitoring and enforcement provisions to ensure that the property
4-22     is used for affordable and accessible housing.
4-23           SECTION 4. This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3623 was passed by the House on May
         9, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3623 was passed by the Senate on May
         21, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor